Indofood Sukses Makmur (INDF) - Performance In-line With Expectations

Indofood Sukses Makmur (INDF) – Maintain BUY
Price: Rp5,600 – Target Price: Rp6,000

Performance in-line with expectations

  • INDF’s 1Q11 earnings and revenue grew by 16% and 16% YoY respectively.
  • 1Q11 Revenue and net income came in-line with our estimate.
  • Top line growth was due to volume growth and higher ASP.
  • Agribusiness is the leader performer with 50.6% YoY revenue growth due to higher CPO and rubber price and sales volume growth.
  • Bogasari’s EBIT margin declined to 8% and EBIT value declined to Rp289.6 billion because of the rising wheat price.
  • We maintain our recommendation and target price Rp6,000 implying 16.7x–14.8x PE’11F–12F. Maintain BUY.